Published On: Wed, Jan 15th, 2014

African players evaluate January polymer prices

African players operating in Algeria, Tunisia, South Africa, Nigeria and Kenya reported receiving new January offers both from their local producers and import suppliers as per the pricing service of ChemOrbis. General comments focus on the fact that the January market is firm, in line with the global trend.

A trader in Nigeria reported receiving January PE offers from three different Middle Eastern producers at $1650-1700/ton for LDPE film, $1670/ton for HDPE film and $1610/ton for LLDPE film, on CIF Apapa Port, Nigeria, 90 days deferred payment basis. The trader commented, “We received firmer prices from different Middle Eastern producers while the prices we received indicate a firmer trend for the month. Plus, these producers allocated limited cargoes to Nigeria for January. A major regional producer gives offers for almost all products but their quotas are restricted. Meanwhile another key Middle Eastern producer offers HDPE film only as a notional price as they do not have availability of this product.”

The trader also received January PP and PE offers from the local Nigerian producer, Eleme Petrochemicals Company Limited. According to him, the domestic producer’s prices were also revised up, in line with the higher import prices. The trader received HDPE film, PP raffia, BOPP, PP block copolymer injection and LLDPE c4 injection at NGN324450/ton ($1943/ton without VAT) while he received HDPE blow moulding at NGN321300/ton ($1924/ton without VAT) , HDPE injection at NGN322350/ton ($1930/ton without VAT), PP injection at NGN321300/ton ($1923/ton without VAT) and LLDPE c4 film at NGN317100/ton ($1899/ton without VAT) on ex-warehouse Lagos, Nigeria, cash.

A trader in Algeria also reported receiving import offers from a major Saudi Arabian producer. He commented, “The Middle Eastern producer’s new prices indicate increases of $20-40/ton when compared with December. These hikes came as no surprise as it was already expected in the market.” According to him, a different Middle Eastern producer reported that they are not offering to Algeria for January while another regional producer only quoted sell ideas for the month at $1660-1670/ton for LDPE film with no actual offers. “Regarding the market sentiment, players are still shaking off the year-end holiday lull but we expect some revival once they are fully back to their desks,” he further added.

The trader received LDPE film at $1680/ton, LLDPE c4 film at $1600/ton, HDPE film, blow moulding and injection at $1610/ton on CIF Algeria, 90 days deferred payment basis. In the PP market, the trader received PP raffia and injection at $1620/ton, PP block copolymer injection at $1680/ton and PP random copolymer injection at $1780/ton with the same terms. For PS, he received GPPS offers at $1940/ton and HIPS offers at $2090/ton.

In Tunisia, a trader received Saudi Arabian and Qatari PP and PE prices while highlighting that the offer levels indicated increases from December. “We see that buyers are generally resisting the higher prices, but after achieving €10-20/ton discounts, they are willing to accept the prices as they also acknowledge the current firm trend that prevails in the market,” he noted. Unlike Algeria and Nigeria, the Tunisian trader said that there is comfortable availability for all grades.

He received PP raffia and injection offers from one major Middle Eastern producer at $1620/ton, PP film at $1640/ton and PP block copolymer injection at $1680/ton on CIF Tunisia, 90 days deferred payment basis. For PE, he received various offers from three different Middle Eastern producers. LDPE film was offered at €1220-1230/ton, LLDPE film at €1180-1210/ton, HDPE film at €1190/ton and HDPE blow moulding and injection at €1210/ton with the same terms.

In South Africa, a trader got January offers with increases. He commented, “A major Saudi Arabian producer’s prices are more competitive than the Asian prices we received. For PE 100, our local producer SAFRIPOL also raised their prices by $60/ton in line with the global trend. Nowadays, players returned to their desks from year-end holidays and we expect some improvements as of next week as converters will need to replenish their stocks. However, the local currency, ZAR, depreciated by around 8% against the US dollar in the last three weeks. This situation is likely to put pressure on sales.”

This trader sold Saudi Arabian HDPE film at $1590/ton and HDPE blow moulding at $1600/ton. He offers HDPE 100 for the same origin at $1690-1700/ton on CIF Durban, South Africa, cash basis. Meanwhile, he received a Chinese PET bottle offer at $1345/ton with the same terms.

In Kenya, a film and injection products maker received Saudi Arabian HDPE film prices at $1580-1600/ton, HDPE blow moulding at $1580/ton, LDPE film at $1560-1600/ton and PP injection at $1580-1600/ton on CIF Mombasa, Kenya, 90 days deferred payment basis.

According to ChemOrbis, the converter remarked, “We received these offers from a major Middle Eastern producer with increases from December. At the moment, the distribution market holds adequate supply levels which are in line with the current demand. In the distribution market, prices are mostly steady when considering the weak end product markets.”